Why McDonald’s is getting it wrong.

McDonald’s seems to be trying to re-position itself. We can already begin to see changes in the menu (the addition of healthier items) and ads featuring what could only be imagined as cultured, urban, hip women getting together to eat a healthy meal at the restaurant.

But it won’t work.

Okay, I concede that they might end up selling some of the new items on the menu, but the company’s brand position will NOT CHANGE. Here’s why:

McDonald’s core consumers don’t really care

I like to think of McDonald’s consumers as consisting of 2 distinct groups. The first group is comprised of loyal customers who eat at the restaurant chain multiple times a week. McDonald’s doesn’t make it’s revenues because it sells healthy food. It makes money because it sells freakishly yummy food at a very reasonable price. The restaurant chain’s loyal customer doesn’t go there to eat oatmeal. Just sayin’.

The second group, I like to call the “gluttonous healthy urbans”. For this group, McDonald’s is all about the ability to indulge, once in a while. This group cares about eating healthy and lives a lifestyle where it’s not exactly considered “cool” to eat at McDonald’s…or meet someone there for a meal. So this whole visual of urban, professional women eating a comparatively (they do use dressing on that salad!) healthy meal at the restaurant doesn’t really work for me.

[Yes I know, kids make up a key segment for McDonald's but the purpose of this blog post isn't to talk segmentation.]

Here’s how McDonald’s should be approaching this

1. Conducting an ethnographic study of consumers at McDonald’s

The key to understanding the various personas (groups of people who share common characteristics/buying patters) is to totally immerse oneself in the sub-cultures of those who visit McDonald’s. It’s the only way to truly understand the motivations of different types of people who eat at the restaurant chain. Unfortunately, an anthropological study requires forward thinking marketing executives, patience and quality ethnographers (all of which are highly lacking in most companies today).

2. Using the results to develop programs, menu and ambiance changes that enhance the customer experience

Here’s a simple example: If McDonald’s understood that the only reason I visit the restaurant is to indulge and seek instant gratification, their menu would’ve included optional ingredients that could make my indulgence experience slightly healthier (and possibly make me want to visit the chain more often).

Similarly, knowing that Sunday morning “Egg McMuffins” are considered one of the best hangover remedies among party-goers might make the chain act differently and develop programs, campaigns and promotions that are culturally relevant.

You with me? How do you think we can make organizations understand the importance of cultural immersion? How can we make organizations more relevant and engaging to consumers?


Why you’d want the Cyberpunks to care!

Cyberpunk who?

The term ‘cyberpunk’ was born quite a while ago and came to be primarily used to describe computer geeks who were (and still are) typically characterized by a distrust in government, a libertarian attitude and a belief that the internet and information must remain open and free (amongst other things).

Cyberpunks rose to cultural prominence in the 90s with the breakout of punk, when the term took on the construct of teenage rebellion and over-night transformed the nerdy computer geek into a rock star.

While many believe that Cyberpunk culture died in 1994 thanks to excessive media exposure, I belong to the clan that believes that the Cyberpunk has evolved over the last 15 years and is still highly influential in swaying market adoption of technology products. Cyberpunks have however dissipated into a number of subcultural groups, although the overarching theme and vision remains the same.

Here’re some examples of the role Cyberpunks have played in the proliferation of products/services:

1. Illegal music downloaders – Adopted Napster and the first and second generation iPods. This played a big role in the widespread proliferation of both these products/services.

2. I.T geeks in universities trying to save the world from Y2K; Sitting in basements, staying up all night coding – Drank Red Bull. The rest is history.

3. Anarchists, situationists and burners took to Tribe.net in its early days. Tribe proliferated initially until it ran into some serious trouble due to excessive commercialization! Today, it continues to exist as a niche social networking site that caters to specific subcultures and has a very loyal user base.

So why bother about Cyberpunks?

It’s pretty simple. Cyberpunks have in the past been instrumental in the success of many products and services. As consumers, we are still influenced by Cyberpunks. Think of the last time you asked for a product recommendation from a buddy who you consider a tech-geek. Which brings me to the reason I decided to write this post.

Conclusion: From a market research standpoint, brands, specially technology brands, are not paying enough attention to the study of digital cultures. Unfortunately, Cyberpunks don’t walk around with labeled T-shirts. Finding and influencing them requires some critical skills in ethnography, intuition and common sense.

References

1. VirtualCampfire.org

2. The evolution of Cyberpunk, NY Times By NICK RAVO and ERIC NASH; Published: August 8, 1993

3. Image source: Flickr User: Extra Ketchup


Love is everything.

The other day I was sitting on a patio at a local coffee joint and watching people walk by (in a totally non-creepy way!). It was the first day of spring in Toronto, love seemed to be in the air (this won’t get any cheesier I promise) and I couldn’t help but wonder what made relationships tick.  At that very instant, I was struck by a profile on tribe.net. This was the profile of “Love is Everything“. I was amazed at how many friends Frank (the dude behind the profile) had – over 14,000! As I spent some time going through his page on Tribe I realized some critical things -

a. Frank figured out what his brand stands for, but he didn’t stop at that. Most importantly, he found a way to translate his brand promise into a cause worth pursuing.

b. Frank is truly authentic! He solely focuses on advancing his message through posts that add value to the community. He does this by giving his community content that furthers the cause.

c. Frank isn’t obsessed with himself. In fact, he hardly talks about himself on his profile.

In today’s digital economy, companies absolutely need to engage and involve their customer communities if they want to regain their business. Unfortunately, just having a great brand and brand promise is not sufficient.

A few days ago, John Bell blogged on the “Utility Brief”. I’d like to leave you with a quote from his article. Hopefully you’ll ponder over this post and share your thoughts.

“Today, consumers want their brands to deliver more value through utility, entertainment or information (the latter two are really just forms of utility). They want high quality products and services but expect brands to go beyond that to keep them as customers or to at least earn their advocacy.”


Personal Empowerment and Community Building through Social Media

Source: Flickr: Franco Folini "Graffiti on a truck: renuer"

Throughout history, the development of technology has always sparked counter-cultural movements that have looked to subvert popular culture and societal norms.

Many of these movements were inspired by the situationist movement of the 1960s. However, all these movements did have 2 common underlying motives. They all looked to improve personal empowerment and encouraged the building and growth of communities.

One such movement led to the use of print media to create the “Whole Earth Catalog“. This catalog promoted openness, user-generated content (yes!..back in the late 60s) and stood for the democratization of information and collective consciousness. Out of this catalog was born a message board called Whole Earth Lectronic Link (WELL) in 1985. This online message board looked to again subvert culture by attempting to use technological tools (initially built for societal control) to bring about Personal Empowerment and a sense of community. Of course, I don’t need to remind you that the same underlying motives form the foundation of Social Media and the web 2.0 world as we know it.

I therefore strongly feel the success of innovation in the Social Media world will be heavily dependent on whether or not newer ideas take the fulfillment of these very motives/ideals a step further. Yes, I know there are many other factors that will influence success, but I believe that these cultural motives are critical to laying a foundation that can withstand growth.

I think a good example is Foursquare (and of course other similar location based services) because it looks to improve personal empowerment by giving businesses the ability to better cater to their customers’ needs. Are there other examples of innovation in social media that adhere to these two principles? Your input will make this post and my follow-up a lot more interesting.

References: www.virtualcampfire.org